28 October 2016
JAKARTA. PT Bank CIMB Niaga Tbk (CIMB Niaga or “the Bank”; IDX: BNGA) today reported an unaudited consolidated net profit of IDR1.3 trillion for the first nine months of 2016, or period ended 30 September 2016 (“9M16”), representing a 390.2% year-on-year (“Y-o-Y”) growth, translating to an earnings per share of IDR51.68.
The improved net profit came on the back of a 4.3% Y-o-Y increase in Net Interest Income (“NII”) and a 29.0% Y-o-Y rise in Non-Interest Income (“NoII”), mainly due to improved treasury and capital market businesses, as well as a 4.9% in Y-o-Y decline in provision expense.
President Director of CIMB Niaga, Tigor M. Siahaan said, “The performance for the first nine months of 2016 was according to plan given the challenging operating environment. We have been making positive and steady progress in our revenue topline as reflected in the improvement in NII and NoII. We have managed operating expenses, controlling it at 1.9% YoY growth. However, the slower economy resulted in slower loans growth. We will continue our cautious growth trajectory with asset quality selection remaining a priority. At the same time we will continue strengthening our digital franchise to enable us to enhance our customer experience, product offering and engage our customers 24/7 (24 hours, 7 days a week) through our digital channels.”
With total assets of IDR237.12 trillion as at 30 September 2016, CIMB Niaga maintained its position as Indonesia's fifth largest bank by assets. Total gross loans were lower Y-o-Y at IDR174.08 trillion as at 30 September 2016 as the Bank maintained a conservative loan growth strategy.
A number of business segments recorded positive performance. The personal and multipurpose loans business grew 15.3% Y-o-Y through the Bank’s X-tra Dana product, while the credit card segment posted a 33.2% Y-o-Y growth to IDR7.83 trillion. This is in line with our strategy to broaden our customer base.
CASA grew 6.1% Y-o-Y to IDR93.94 trillion as at 30 September 2016, with the CASA ratio rising 492 basis points (“bps”) Y-o-Y to 52.58%. Savings posted a growth of 11.1% to IDR48.12 trillion. The Loan to Deposit Ratio (“LDR”) was higher at 96.07% at end-September 2016 compared to 94.93% in the same period last year.
As at 30 September 2016, 94% of the total transactions by Consumer Banking customers were made through digital banking channels such as CIMB Clicks, Go Mobile, ATMs and Rekening Ponsel (mobile wallet). In line with the overall increase in digital adoption by customers: (a) users of CIMB Clicks grew by 20.6% Y-o-Y to 1.16 million, (b) Go Mobile users grew by 34.3% Y-o-Y to 1.25 million and (c) Rekening Ponsel users rose by 60.0% Y-o-Y to 1.90 million as at the end of September 2016.
In the Syariah Banking segment, CIMB Niaga's Islamic Business Unit’s total financing stood at IDR8.13 trillion (+17.7% Y-o-Y) with third-party deposits of IDR9.29 trillion (+18.3% Y-o-Y) as at 30 September 2016.
CIMB Niaga’s Capital Adequacy Ratio (“CAR”) strengthened to 18.14% as at 30 September 2016.
As at 30 August 2016, CIMB Group holds a 92.5% shareholding in CIMB Niaga, while public shareholders own the remaining 7.5%.
“Going forward, we believe our controlled cost structure, sound capital position along together with Bank Indonesia’s easing monetary policy stance and successful government tax amnesty program will underline the Bank’s positive medium term outlook,” added Tigor.
Network
To support its business growth, CIMB Niaga continues to improve customer experience by offering a comprehensive suite of products and services through 697 customer touchpoints (including 20 mobile branches). As at 30 September 2016, the Bank’s nationwide network operates 3,704 automated teller machines (“ATMs”), 750 cash deposit machines (“CDMs”), 187 Multi-Function Devices (“MFDs”), and 21 digital lounges.
Awards and Recognition
In the first nine months of 2016, CIMB Niaga garnered several notable awards including the Market Conduct 2015 from the Indonesian Financial Service Authority or Otoritas Jasa Keuangan ("OJK") in recognition of CIMB Niaga’s efforts towards effective customer data protection. CIMB Niaga was also recognized as both "The Best Trade Finance Bank in Indonesia" and “Best Credit Card Product in Indonesia” by The Asian Banker. Recently, the Bank also received the award for “Derivatives House of the Year, Indonesia” from The Asset Triple A.
